SEBI eases margin burden on clients using early pay-in facility in cash segment
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓SEBI has allowed clients to use the value of shares delivered early to meet margin requirements in the cash segment.
- ✓The SEBI circular issued on Thursday said, "it is decided that where a client has a net sell obligation in a settlement, the CC shall not collect margin."
Story at a Glance
- Category
- MARKET
- Reported By
- Moneycontrol
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
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Market regulator Securities and Exchange Board of India (SEBI) has allowed clients to use the value of shares they have already delivered to meet margin requirements for their other trades. The move is aimed at reducing the need for additional margin money when clients take fresh positions in the cash market.
This will reduce the need to provide additional margin for such trades, freeing up funds and improving the use of available capital, subject to the value of shares accepted under the Early Pay-In (EPI) facility. Early Pay-In means a trader delivers shares before the normal settlement date.
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